Buying undeveloped acreage is a popular way to make a profit in real estate investing and providing you know what you are doing, it is possible to make a healthy profit from it.
The fact is they just are not making land anymore, which is really saying that the amount of buildable land available for development is becoming less and less each year. The smart investor who can afford to sit on his investment for a period of time, turns his attention on land that is for sale.
As a community expands, the need for developing land grows with it, and this is where the smart investor makes his money. There are several ways that undeveloped land becomes available and by keeping a close eye on all of them you can find the property that you are looking for. Check with your city offices for properties that owe back taxes, many times the owners would rather sell than pay the taxes. However if you do buy this type of property be prepared to pay the back taxes, as well as the cost of the land.
Looking around the city you can find vacant lots and a quick check of city records will tell you who owns it. Of course as a city expands, it spreads out, so look out past current city limits and see what's available, or check with some of the local farmers and see if they are considering selling out. Sometimes if you are there at the right time you can get them to sell, simply to help them get out of debt.
When looking at the property, you need to take into consideration a few things before you make an offer. Take a good look at the infrastructure, does it have access to roads, is there a sewer line in place or is there one in the city plans, has electricity been brought out in the vicinity? All of these things will make your investment worth far more, especially if you are looking to make a fast turnaround on your money.
With the current slowdown in home sales, land has become one of the best investments currently available, as more and more investors are slimming down their inventories. For the savvy investor this can mean great profits as long as you are prepared to hold on to your property for a short period of time. Like most downturns in the economy this one is not expected to last long. As the economy begins to get better, the housing market will rebound and those who made their real estate investment in acreage will stand to make huge profits.
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